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Apple could be required to allow rivals to run separate application platforms on iPhones across Britain, after a ruling from the market watchdog.

This would be a significant change to the company's well-known "closed system" where applications can only be downloaded from its own App Store.

But the Competition and Markets Authority has designated both the tech giants as having "dominant market position" - effectively saying they have significant control over mobile platforms.

Watchdog Assessment

The CMA said the tech firms "could be restricting innovation and market rivalry".

But the regulator clarified it did not "find or assume wrongdoing" from the companies.

"The app economy contributes 1.5% of the British economy and sustains around four hundred thousand positions, which is why it's essential these sectors work well for enterprises," commented a top executive from the competition authority.

Around ninety to one hundred percent of British smartphones operate using Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

According to current data, nearly half of UK mobile owners own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the remaining users using Google's Android.

The Company's Reaction

The CMA's investigation focused on how prominent the companies' own applications are versus rivals - as well as their web applications and operating systems.

It is unclear what modifications the authority will seek to implement, but previously it published roadmaps detailing potential measures it could take.

These comprise mandating it to be easier for people to transition between Apple and Android phones, and for both companies to rank apps "in a fair, objective and transparent manner" in their app stores.

Apple specifically may be compelled to allow alternative app stores on its devices, and enable people to install apps straight from companies' websites.

This would follow comparable regulations in the European Union, which previously imposed measures against Apple for anti-competitive behaviour.

The technology firm warned the UK could lose access to receiving updates - as has happened in the EU - which the organization blames on heavy regulation.

For example, some Apple Intelligence capabilities which have been launched in other parts of the world are not accessible in the European market.

"Apple faces intense rivalry in every sector where we do business, and we strive continuously to create the best products, services and customer interface," the company said in a release.

"Britain's implementation of European regulations would weaken that, resulting in consumers with weaker privacy and safety, delayed access to latest functions, and a divided, more complicated user journey."

Google's Standpoint

Google device owners can presently use third-party app stores - though critics say they are not as smooth as Google's own application marketplace.

The regulator's plan said Google may have to "modify the interface" of downloading apps straight from online sources, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the rationale for the current classification," a Google competition lead stated.

The executive said "the majority" of Google device owners use alternative app stores or install applications straight from a developer's website, and claimed there is a much wider selection of applications available for Google device owners compared to those on iOS products.

"Currently available are twenty-four thousand Android phone models from thirteen hundred device makers globally, facing strong rivalry from Apple's platform in the United Kingdom," the representative continued.

Google's platform is an open-source operating system, which means creators can use and build on top of it for no cost.

Google contends this means it promotes competition.

But advocacy organizations said restrictions on these companies' power in other countries "currently assist businesses to develop and giving consumers more options".

"The companies' control is now causing real harm by limiting options for users and market rivalry for companies," stated a policy expert.